General Dynamics IT awarded $43.6M for network operations, highlighting IT infrastructure support needs

Contract Overview

Contract Amount: $43,634,788 ($43.6M)

Contractor: General Dynamics Information Technology, Inc.

Awarding Agency: Office of Personnel Management

Start Date: 2014-02-19

End Date: 2018-04-30

Contract Duration: 1,531 days

Daily Burn Rate: $28.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: IT

Official Description: AT 11646 STA 4 NETWORK OPERATIONS IGF::CL::IGF

Place of Performance

Location: WASHINGTON, DISTRICT OF COLUMBIA County, DISTRICT OF COLUMBIA, 20415

State: District of Columbia Government Spending

Plain-Language Summary

Office of Personnel Management obligated $43.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC. for work described as: AT 11646 STA 4 NETWORK OPERATIONS IGF::CL::IGF Key points: 1. Contract value of $43.6M over 4 years suggests significant investment in ongoing IT support. 2. Full and open competition indicates a potentially competitive bidding process for these services. 3. The contract's duration of 1531 days points to a long-term need for stable network operations. 4. Firm-fixed-price structure aims to control costs and provide predictability for the agency. 5. The award to a large, established contractor like General Dynamics IT suggests a focus on reliability and experience. 6. Network operations are critical for agency functionality, implying this contract supports essential government services.

Value Assessment

Rating: good

The contract value of $43.6M for network operations over approximately four years appears reasonable given the scope of IT infrastructure support. Benchmarking against similar large-scale IT service contracts for federal agencies suggests that this award falls within expected spending ranges for comprehensive network management. The firm-fixed-price contract type helps to mitigate cost overruns, providing a degree of value certainty for the Office of Personnel Management (OPM).

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under full and open competition, suggesting that multiple vendors had the opportunity to bid. With 3 bidders identified, the competition level appears moderate, which can contribute to price discovery and potentially favorable pricing for the government. The agency's decision to use full and open competition indicates a commitment to seeking the best value from the broadest possible market.

Taxpayer Impact: A competitive bidding process generally benefits taxpayers by driving down prices and encouraging innovation among contractors, leading to more efficient use of public funds.

Public Impact

Federal employees and agency operations benefit from reliable and secure network infrastructure. Essential government services managed by the Office of Personnel Management are supported by these network operations. The contract's impact is primarily within the District of Columbia, where OPM's headquarters are located. The IT workforce involved in network operations and support is sustained through this contract.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if services become highly specialized or integrated.
Reliance on a single large contractor could limit future flexibility in technology adoption.

Positive Signals

Firm-fixed-price contract provides cost certainty and predictability.
Full and open competition suggests a robust process for selecting the best value.
Award to an experienced contractor like General Dynamics IT implies a focus on reliable service delivery.

Sector Analysis

This contract falls within the Computer Systems Design Services sector, a critical component of the broader Information Technology (IT) industry. The IT services market for the federal government is substantial, with agencies consistently investing in infrastructure, cybersecurity, and modernization. This contract for network operations aligns with the government's ongoing need to maintain and enhance its digital backbone, ensuring the efficient delivery of public services. Comparable spending benchmarks for large-scale IT support contracts often run into tens or hundreds of millions of dollars annually.

Small Business Impact

The contract was not set aside for small businesses, and there is no explicit indication of small business subcontracting requirements in the provided data. This suggests that the primary award went to a large business, and the focus was on securing a comprehensive solution from a major IT provider. The absence of small business set-asides means that opportunities for smaller firms to directly participate in this specific contract may be limited, though they could potentially engage as subcontractors if General Dynamics IT opts to utilize them.

Oversight & Accountability

The contract is subject to standard federal procurement oversight mechanisms. As a firm-fixed-price contract, it is designed to limit cost variances. Accountability is maintained through performance metrics and reporting requirements, though specific details are not provided. Transparency is generally facilitated by the Federal Procurement Data System (FPDS), where contract awards are publicly reported. The Inspector General for the Office of Personnel Management would have jurisdiction over any investigations related to fraud, waste, or abuse concerning this contract.

Related Government Programs

IT Infrastructure Support Services
Network Management Contracts
Computer Systems Design Services
Federal IT Modernization Programs
General Services Administration (GSA) Schedules (potential vehicle)

Risk Flags

Contract duration exceeds 4 years, potentially indicating long-term reliance.
Firm-fixed-price contracts can pose risks if costs escalate unexpectedly.
Limited competition (3 bidders) may reduce price discovery compared to broader solicitations.

Frequently Asked Questions

What is this federal contract paying for?

Office of Personnel Management awarded $43.6 million to GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC.. AT 11646 STA 4 NETWORK OPERATIONS IGF::CL::IGF

Who is the contractor on this award?

The obligated recipient is GENERAL DYNAMICS INFORMATION TECHNOLOGY, INC..

Which agency awarded this contract?

Awarding agency: Office of Personnel Management (Office of Personnel Management).

What is the total obligated amount?

The obligated amount is $43.6 million.

What is the period of performance?

Start: 2014-02-19. End: 2018-04-30.

What is the track record of General Dynamics Information Technology, Inc. with similar federal network operations contracts?

General Dynamics Information Technology, Inc. (GDIT) has a long and extensive history of providing IT services, including network operations and management, to various federal agencies. They are a major federal contractor with significant experience in large-scale IT infrastructure support. Their portfolio often includes contracts for network design, implementation, maintenance, and security across defense, civilian, and intelligence communities. GDIT's track record typically demonstrates the capacity to handle complex, mission-critical IT requirements, often involving substantial budgets and long-term engagements. Performance on past contracts, while varied, generally reflects their position as a leading provider capable of meeting demanding government specifications for reliability and security in network operations.

How does the $43.6M contract value compare to other federal network operations contracts of similar scope and duration?

The $43.6 million contract value for network operations, awarded over approximately four years (1531 days), appears to be within a reasonable range for large-scale federal IT infrastructure support. Federal contracts for comprehensive network management, encompassing design, implementation, maintenance, security, and user support for significant agency operations, frequently fall into the tens of millions to hundreds of millions of dollars. Factors influencing this value include the number of users supported, the complexity of the network architecture, the criticality of the services, and the specific services included (e.g., cybersecurity, data center management). Given that this contract is for the Office of Personnel Management, a key civilian agency, the investment reflects the essential nature of robust IT infrastructure for government functions.

What are the primary risks associated with a firm-fixed-price contract for network operations, and how might they be mitigated?

The primary risk with a firm-fixed-price (FFP) contract for network operations is that the contractor, General Dynamics Information Technology, Inc., may face unforeseen cost increases that reduce their profit margin or lead to quality compromises if not managed effectively. For instance, unexpected hardware failures, software vulnerabilities requiring extensive patching, or increased labor costs could strain the fixed price. Mitigation strategies typically involve robust contract management by the agency (Office of Personnel Management), including clear performance standards, regular progress reviews, and strong oversight. The contractor's own internal risk management, including accurate initial cost estimation, contingency planning, and efficient operational practices, is also crucial. The FFP structure inherently incentivizes the contractor to control costs, but the agency must ensure that cost-cutting measures do not negatively impact service delivery or security.

What does the 'Computer Systems Design Services' (NAICS 541512) classification imply about the services provided under this contract?

The NAICS code 541512, 'Computer Systems Design Services,' indicates that the contract primarily involves providing expertise in designing and implementing computer systems. For network operations, this typically encompasses the planning, integration, and deployment of network hardware and software, as well as the design of network architecture to meet specific performance, security, and scalability requirements. It suggests that the services go beyond simple maintenance or repair, involving the strategic development and enhancement of the agency's network infrastructure. This could include network topology design, selection and integration of network devices (routers, switches, firewalls), development of network security protocols, and ensuring the system meets the functional needs of the Office of Personnel Management.

Given the award was made in 2014 and ended in 2018, what can be inferred about historical spending patterns for OPM network operations?

The award date of February 19, 2014, with an end date of April 30, 2018, indicates a spending pattern of approximately $43.6 million over a period of roughly four years. This translates to an average annual expenditure of about $10.9 million for network operations. This historical data point suggests that OPM has consistently allocated a significant portion of its IT budget towards maintaining its core network infrastructure during that timeframe. Such consistent investment is typical for federal agencies reliant on stable and secure IT systems for their operations. It implies that network operations were considered a critical and ongoing requirement, justifying sustained funding rather than a one-time project.

Industry Classification

NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Computer Systems Design Services

Product/Service Code: IT AND TELECOM - INFORMATION TECHNOLOGY AND TELECOMMUNICATIONS › ADP AND TELECOMMUNICATIONS

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 4300 FAIR LAKES CT, FAIRFAX, VA, 22033

Business Categories: Category Business, Hospital, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $43,634,788

Exercised Options: $43,634,788

Current Obligation: $43,634,788

Parent Contract

Parent Award PIID: OPM3212A0020

IDV Type: BPA

Timeline